For quite a while I was buying and re-selling LS1 motors.
I can see if my connection is still intact. Generally I can get a 2000+ ls1 motor from pcm to pan for about $2000 turn key.
This all depends on what he has at the time though. For the trans. use the stock trans for now. It will get the job done untill some type of overdrive is decided on.
I might also recomment scoping out a totaled F-Body. They can be had for less then $4000 and include tons of parts including brakes and motor/trans! That could save some HUGE dollars from a little "smart" shopping!